1. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

   	Rails Division	Locomotive Division	Corporate Total
   Cost of goods sold	$47,400	$31,600
   Direct operating expenses	27,900	21,900
   Sales	99,900	68,100
   Interest expense			$2,600
   General overhead			19,400
   Income tax			4,200

   The net income for Train Corporation is

   a.$76,300

   b.$13,000

   c.$39,200

   d.$89,000